| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 50.80 | -29 |
| Intrinsic value (DCF) | 33.82 | -53 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 18.50 | -74 |
Kellogg Company (KEL.DE) is a global leader in the packaged foods industry, specializing in snacks and convenience foods. Headquartered in Battle Creek, Michigan, the company operates across four key regions: North America, Europe, Latin America, and Asia Middle East Africa. Kellogg's diverse product portfolio includes iconic brands such as Kellogg's cereals, Pringles, Cheez-It, Eggo, and Morningstar Farms, catering to a wide range of consumer preferences from breakfast staples to savory snacks and plant-based alternatives. With a history dating back to 1906, Kellogg has built a strong reputation for quality and innovation in the consumer defensive sector. The company distributes its products through a robust network of retailers, brokers, and distributors, ensuring broad market penetration. Kellogg's strategic focus on brand strength, operational efficiency, and global expansion positions it as a resilient player in the competitive packaged foods market.
Kellogg Company presents a stable investment opportunity within the consumer defensive sector, supported by its strong brand portfolio and global presence. The company's diversified product mix and consistent revenue streams (€12.75 billion in FY 2024) provide resilience against economic downturns. However, investors should note the moderate net income (€1.34 billion) and significant total debt (€6.34 billion), which could impact financial flexibility. Kellogg's low beta (0.309) suggests lower volatility compared to the broader market, appealing to risk-averse investors. The dividend yield, supported by a €2.20 per share payout, adds to its attractiveness for income-focused portfolios. Challenges include intense competition and potential margin pressures from rising input costs. Overall, Kellogg is a solid pick for long-term investors seeking exposure to stable, well-established food brands.
Kellogg Company holds a competitive edge through its extensive brand portfolio and global distribution network. Its ownership of leading brands like Pringles and Cheez-It provides strong pricing power and customer loyalty. The company's focus on innovation, particularly in health-conscious and plant-based segments (e.g., Morningstar Farms, Kashi), aligns with shifting consumer trends. However, Kellogg faces stiff competition from larger peers like Nestlé and Mondelez, which have greater scale and resources for R&D and marketing. Kellogg's regional segmentation allows for tailored strategies but may limit synergies compared to more centralized competitors. The company's debt levels are higher than some peers, potentially constraining aggressive expansion or M&A. Its strong operating cash flow (€1.76 billion) supports ongoing investments in brand building and efficiency initiatives. Kellogg's competitive positioning is solid but not dominant, requiring continuous innovation and cost management to maintain market share in the crowded packaged foods landscape.